Essential baby products, such as cribs, strollers, and car seats, may not be subject to a 145% tariff when imported into the United States.
On May 7, during a hearing before the US House of Representatives, Treasury Secretary Scott Bessent said that the Trump administration is considering exempting car seats, cribs, strollers, and other essential baby products imported from China from tariffs. Currently, all Chinese goods are subject to an additional 145% tariff when entering the US.
Bessent revealed the information after receiving a question from Congresswoman Ayanna Pressley. Ms. Pressley said that more than 3.5 million children are born in the US each year, and almost all strollers are made in China. "Prices are already going up," she said.
During the 2018 trade war with China, the Trump administration also exempted many Chinese goods from the 25% import tax, such as bicycle helmets and child safety products. However, cribs, diaper bags, and wooden railings are still subject to the tax.
In a meeting last week, Chris Peterson, CEO of Newell Brands, a company that makes strollers, car seats and other children's products under the Graco brand, said that about 97% of strollers and 87% of car seats for children in the US are imported from China. They have had to increase their prices by 20% due to the impact of the import tax.
Peterson said they have not even applied the latest 125% tax increase to their prices. Newell Brands has temporarily stopped importing more goods from China, because its current inventory is enough to last several months.
"However, at some point, we will start to run out of inventory. Retailers will also run out of stock and have to reorder from China. At that point, the whole industry will have to continue to adjust prices to offset the import tariffs," he predicted.
After imposing tariffs of up to more than 100% on each other's goods, both the US and China have taken steps to minimize the economic impact. So far, the US has eased tariffs on cars and auto parts, temporarily exempting corresponding tariffs on smartphones, laptops, memory chips, and many electronic devices.
China is also said to have drawn up a list of more than 100 products from the US that will be exempt from import tariffs, such as semiconductors, vaccines, chemicals, and jet fuel. Trade tensions between the two countries are expected to cool this week when US and Chinese officials are scheduled to meet in Switzerland to discuss tariffs.
(according to Reuters)